Pending
Sole Financial Adviser
€185 million
Royalty financing agreement
Genfit
Sole Financial Adviser
Van Lanschot Kempen is acting as Sole Financial Adviser in Genfit’s royalty financing for up to €185 million
Transaction highlights
- Genfit (EPA/Nasdaq: GNFT) has announced a non-dilutive capped royalty financing agreement with HealthCare Royalty (HCRx) for up to €185 million
- The agreement includes €130 million upfront, paid upon closing, with the optionality to receive an additional €55 million based on near-term milestones. Closing is subject to approval by the 2025 OCEANE bondholders
- HCRx will receive a portion of the royalties from global sales of Iqirvo®, under Genfit’s licensing agreement with Ipsen, up to a specified cap, after which all future royalties will revert back to Genfit. Genfit retains rights to all future regulatory, commercial and sales-based milestone payments from Ipsen
- This deal will extend Genfit’s cash runway beyond 2027, supporting an ambitious R&D pipeline in Acute-on-Chronic Liver Failure (ACLF), and aims to eliminate the company’s convertible debt overhang
- The transaction secures a highly competitive and flexible financing solution for Genfit, with the total transaction size exceeding the company’s market capitalisation, highlighting the substantial impact of this deal
- Van Lanschot Kempen is acting as Sole Financial Adviser to Genfit, guiding the company throughout to secure terms that favourably align with Genfit’s capital requirements. Van Lanschot Kempen’s role included running a competitive process, negotiating terms and conditions, optimizing structure to align with Genfit’s requirements and overall process management
- This transaction exemplifies Van Lanschot Kempen’s expertise in providing a wide range of financing solutions, including equity, structured finance, debt advisory and royalty financing. With >€1 billion in alternative financing transactions executed since 2020, underscoring strong expertise and market position in securing competitive, flexible and innovative financing solutions for European life sciences & healthcare companies at various stages
Company description
- Genfit is focused on improving the lives of patients with rare and life-threatening liver diseases
- Genfit’s expertise in the development of high-potential drug candidates was demonstrated by the accelerated approval of Iqirvo® (elafibranor) by the FDA, the EMA, and the MHRA for Primary Biliary Cholangitis (PBC) in 2024, in collaboration with Ipsen
- Genfit has built up an extensive R&D portfolio of programs at various stages based on complementary mechanisms of action with a focus on ACLF
- Genfit is headquartered in Lille, France, and is listed on the Euronext Paris and Nasdaq
Background Van Lanschot Kempen Life Sciences & Healthcare
In the last twelve months, Van Lanschot Kempen has successfully completed a large number of transactions in its Life Sciences & Healthcare franchise. Recent transactions include:
- Sole Financial Adviser to IO Biotech in securing a c. €58 million loan facility from the European Investment Bank
- Sole Financial Adviser in the recommended cash offer of SEK 725 million by Pharming Group to acquire Abliva
- Financial Adviser in the USD 479 million US Public Offering by NewAmsterdam Pharma
- Sole Financial Adviser to SNIPR Biome in securing a €20 million venture debt facility from the European Investment Bank
- Lead Manager in the USD 1 billion Capital Increase by Zealand Pharma
- Lead Manager in the USD 460 million Capital Increase by Merus
- Sole Financial Adviser to Pharming Group in the refinancing of its convertible bonds
- Financial Adviser in the SEK 107 million Rights Issue by Alligator Bioscience
- Co-Manager in the USD 350 million Capital Increase by Autolus Therapeutics
- Financial Adviser to Galapagos in the €170 million sale of its Jyseleca business to Alfasigma
- Sole Financial Adviser to Zealand Pharma in securing a €90 million venture debt facility from the European Investment Bank